Fed Official Discounts Threat
Of 'Bubble' Trouble

WASHINGTON -- A top Federal Reserve official rejected charges that low interest rates are fostering new bubbles in financial and housing markets.

Even if such bubbles were a threat, the Fed shouldn't risk the high cost of weakening the economy now by raising rates simply to minimize the odds of excesses developing later, Federal Reserve Governor Donald Kohn said. "The balance of costs and benefits does not favor policy action to...